Critical raw materials (CRM), also referred to as critical materials or critical minerals, are raw materials designated by governments as critical for their economies. There is no single list of such materials, as the list varies from country to country, as does the definition of "critical". Critical raw materials usually include technology-critical elements, rare-earth elements, and/or strategic materials. Demand has risen and prices have dropped for some critical minerals, due to the demand driven by the expansion of renewable energy technologies.
Price movements of critical materialsDemand for key energy transition minerals in 2023
History and background
Analyzing the historical development of country approaches to critical materials, David Peck discusses the interplay between those that emphasize economic growth ("tech will fix it") and those that argue that finite resources will be exhausted ("limits to growth"). These two approaches are a feature of debate around critical materials and both are important, while countries also act in self-interest as well as responding to geopolitical tensions.[4]
Terminology and country definitions
"Critical minerals" or "critical raw materials" are raw materials designated by governments as critical for their economies. There is no single list of such materials, as the list varies from country to country, as does the definition of "critical".[5] They are often referred to as "CRMs".[6]
For advanced industrial economies the commonly used terms "critical minerals" or "critical raw materials" refer to materials required for their strategic industries where there is a risk of interruption to supply.[7] The Minerals Security Partnership (MSP) is a transnational association whose members seek to secure a stable supply of raw materials for their economies.[8] On 5 April 2024, MSP partners launched the Minerals Security Partnership Forum to enhance cooperation in respect of CRM critical to "green and digital transitions".[9]
According to the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), criticality has no agreed definition, varies with time, and is specific to country and context.[10]
The United States 2023 Final Critical Materials List includes critical materials for energy (sometimes known as the "electric 18")[a] together with 50 critical minerals.[b][11]
EU
Figure gives a summary of CRMs lists reported by the European Commission in 2011, 2014, and 2017
Lists of CRMs were published by the European Commission in 2011, 2014, 2017, 2020, and 2023. The fifth list of 34 CRMs was published in Annex II of the Regulation proposal COM(2023).[6] The Critical Raw Materials Act came into effect in the European Union on 23 May 2024. It specifies a list of 34 CRMs, including 17 raw materials[c] considered strategic.[12][13] The EU is mostly dependent on imports for these minerals: , 100% of its supply of heavy rare-earth elements (REEs) comes from China; 99% of its supply of boron from Turkiye; and South Africa provides 71% of its needs for platinum and an even greater percentage of iridium, rhodium, and ruthenium.[6]
UK
The Critical Minerals Strategy, Resilience for the Future[14] was published in July 2022, updated[15] in March 2023.[16] As of December 2024, the UK does not produce any of the 18 identified highly critical CRM[d][17] while a watchlist of increasingly critical materials includes Iridium, Manganese, Nickel, Phosphates and Ruthenium.[18]
In November 2024, the UK 2024 Criticality Assessment commissioned by the Department for Business and Trade, was published by the Critical Minerals Intelligence Centre, a unit of the British Geological Survey.[19] The report identified 34 minerals as critical. Aluminium, chromium, germanium, iron, and nickel were added to the 2021 list, while palladium was removed.[20] By fostering sustainable planning and design, the UK could reduce its demand for limited resources while supporting long-term economic resilience.[21]
The National Engineering Policy Centre released a report into critical materials in the United Kingdom in 2024. It studied ways of reducing the UK's demand for critical materials, especially in infrastructure, through changes to planning, design, and end-of-life of technologies like electric vehicle batteries, wind turbines, and also digital devices. The report also warns that without strategic interventions to reduce critical material dependency, the UK risks jeopardising its net zero objectives and facing economic instability due to material shortages. It also outlines specific recommendations to reduce the UK’s use and consumption of critical materials.[22][23]
China
On 30 November 2023, the Ministry of National Security of China defined critical minerals[e] as "those irreplaceable metal elements and mineral deposits used in advanced industries, such as new materials, new energy, next-generation information technology, artificial intelligence, biotechnology, edge-cutting equipment manufacturing, national defense, and military sectors."[24]
Australia
The Australian Government, via its Critical Minerals Office, published a Critical Minerals List and a Strategic Materials List in June 2023, updated on 20 February 2024,[25] when nickel was added to the list.[26] The list is updated every three years, and aims to support:[25]
The list includes 31 entries, which include "Platinum-group elements" and "Rare-earth elements". Australia has some resources for many of its CRMs.[25] The government's Critical Minerals Strategic Reserve plan is due for publication at the end of 2026. The intention of this plan is to introduce mechanisms such as a price floor that bring stability to the market and reduce price volatility.[27]
Its list of Strategic Materials include those important for the global transition to net-zero and wider strategic applications, for which Australia has geological potential for resources, and are in demand from strategic international partners. These materials, whose supply chains do not meet the criteria of vulnerability to be included on the CRM list, are: aluminium, copper, phosphorus, tin, and zinc.[25]
Geopolitical risk
There is an increased focus on supply chains in general and for critical materials specifically, highlighted by US-China competition. China is the biggest producer of 30 of the US 50 critical minerals as well as being a significant player in downstream processing and manufacture.[28] Following US restrictions on the Chinese semiconductor industry,[29] China, on 3 December 2024, for the first time imposed export restrictions targeted at the United States only rather than all countries, covering antimony, gallium, and germanium.[30]
A 2024 analysis from the World Economic Forum states that potential scarcity of critical materials arising from the Energy transition will be driven by demand factors and suggests ways for governments to address the uncertainties involved.[31][32]
↑ David Peck (2018). "5.A Historical Perspective of Critical Materials, 1939 to 2006". In S. Erik Offerman (ed.). Critical materials: underlying causes and sustainable mitigation strategies. World Scientific Publishing Co. Pte. Ltd. ISBN9789813271043.
S. Erik Offerman, ed. (2018). Critical materials: underlying causes and sustainable mitigation strategies. World Scientific Publishing Co. Pte. Ltd. ISBN9789813271043.
Dr. Arda Işıldar & Dr. Eric D. van Hullebusch, ed. (2024). Critical Materials and Sustainability Transition. CRC Press/Balkema. ISBN978-1-003-21892-0.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
